Digital rupiah expected to increase Indonesia’s economic efficiency

Jakarta (Indonesia Window) – Governor of central bank Bank Indonesia (BI) Perry Warjiyo has stated that the implementation of Central Bank Digital Currency (CBDC) or digital rupiah would increase economic efficiency in the country.

“Since we will circulate digital rupiah through digital blockchain technology and Distributed Ledger Technology (DLT), it would be really efficient,” said Perry Warjiyo in the monthly board of governors meeting here, Thursday (Aug. 19).

According to him, the efficiency would also be felt by banks in money market transactions, considering that there would be no transaction fees as banks would be connected to the DLT system in the context of wholesale digital rupiah.

In addition, digital rupiah would also streamline retail trade because with this technology retail transaction costs would be very low.

The speed of transactions in retail trade, he continued, was expected to be very fast, because it is supported by BI Fast, the National Open API1 Payment Standard (SNAP), and the Quick Response Code Indonesian Standard (QRIS).

“All of these also increase efficiency and the economic ecosystem,” said Perry.

However, there could be some risks in digital rupiah implementation related to technology and cyber security aspects, or other factors.

“There are indeed several risks, and therefore we will manage the development,” said Perry.

Reporting by Indonesia Window